In current state of affairs, it seems that sponge manufacturers in domestic market are still under pressure. While, billet offers have improved sharply during the same duration. In a week, billet prices rose steeply by INR 500-900/MT, but there is mere increase of INR 100-300/MT in sponge prices.
A sponge manufacturer (500 TPD) in Durgapur reported, “Sharp gain in billet offers is not supporting sponge offers because of few bulk C-DRI sellers in the market.”
As per sources, persistent rise in imported scrap in north and east Indian markets has led to fall in sponge prices in other markets due to surplus quantity. In addition, sponge producers are also not curtailing production due to iron ore availability at competitive offers. As a result of low demand and increased sellers, sponge prices didn’t get any support and remained under pressure.
An integrated plant owner in Raipur reported, “Oversupply of C-DRI by Odisha based manufacturers at cheaper prices has led to pressure on local sponge iron prices.”
Few Rourkela based medium size plant operators reported that they are offering discount on purchase of bulk quantities as pilling stock is increasing selling pressure.
Sponge and billet offers as on 2 Mar’16
| Market | Particulars | Current Price | W-o-W | M-o-M |
| Ex-Raipur | Billet (100*100) | 22,550 | +450 | +1,450 |
| C-DRI (80 FeM) | 13,150 | +100 | +450 | |
| Ex-Rourkela | Billet (100*100) | 21,200 | +500 | +1,700 |
| C-DRI (80 FeM) | 11,600 | 0 | +550 | |
| Ex-Durgapur | Billet (100*100) | 22,050 | +650 | +1,050 |
| C-DRI (78 FeM) | 12,650 | +150 | +150 |
Prices in INR/MT, same day/advance payment
Source: SteelMint Research
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